Hodges said in a statement Wednesday she congratulated Frey on his victory, adding she told him she knows "he loves Minneapolis," and that she's committed to a smooth transition.

She also said serving as mayor of Minneapolis "is the greatest honor of my life," adding that the thing she loves most about Minneapolis is "you: the most welcoming, engaged, passionate, diverse, committed, determined, strong, and loving people anywhere."

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Hodges thanked supporters, staff, volunteers, her friends and family, and "my beloved Minneapolis, from the bottom of my heart."

Hodges' leadership was heavily tested as mayor

Hodges was elected mayor of Minneapolis in 2013 after serving on the Minneapolis City Council for eight years, her bio says.

The Minnesota native became the second woman ever to be mayor of the city. In her four years in the position, she often emphasized her goals of eliminating racial disparities, improving community-police relations, and trying to make the city a better place for everyone.

Hodges and the Minneapolis Police Department

Much of her time as mayor was tested by tension with police officials and community activists, starting with the #Pointergate scandal in 2014.

That tension was escalated a year later when Jamar Clark was fatally shot by police.

Clark's death ripped a scab off a wound many people didn't realize the city had, prompting weeks of protests, as well as calls for reform and the demilitarization of police. It even helped one of this year's mayoral candidates – Nekima Levy-Pounds – decide to run in hopes of enacting real change in the city.

In her State of the City speech over the summer – and throughout much of her re-election campaign – Hodges stressed that Minneapolis has to go through some tough stuff in order to get stronger and be better for everyone living here.

But on Tuesday, voters decided they'd be better off going through that tough stuff without her leading the way.